Pressure mounts for HRL funds recovery

The Victorian Government is under increasing pressure to withdraw funding for HRL's proposed dual gas power plant in the Latrobe Valley.

HRL is expected to shelve the project, after the Commonwealth withdrew $100 million in funding two weeks ago.

A spokeswoman for state Energy Minister Michael O'Brien says the Government is still talking to lawyers about whether it can recoup $50 million from the company.

Mark Wakeham from Environment Victoria says the project no longer has commercial finance and taxpayers' money should be recovered.

"Minister O'Brien seems to be taking a very long time to be taking what is a pretty simple decision to withdraw the $50 million grant and to recover the monies already given to HRL," he said.

"Ideally they'd be using that to support renewable energy and energy efficiency projects in the Latrobe Valley.

"It appears to have been a waste of taxpayers' money but also a number of years in the fight against climate change and to build clean energy projects and it's important now that the project has missed all its grant deadlines that the grant is withdrawn."